- June final CPI +2.3% vs +2.3% y/y prelim
- Prior +2.6%
- June final HICP +2.4% vs +2.4% y/y prelim
- Prior +2.7%
German headline annual inflation is confirmed at 2.3%, keeping unchanged from the preliminary estimate. This represents a slight slowdown from May (2.6%), with the rise in energy prices being less profound this time around.
That being said, Destatis does note that: “Energy prices continued to rise at an above-average rate as a result of the Iran war and thus remained a key driver of inflation.”
The year-on-year change for energy prices continue to ease, with it being at +3.4% in June. That marks a drop from +6.6% in May and +10.1% in April. So, that’s the main factor impacting the headline estimate for the most part. A slight drop in food price inflation also did play a role though, rising by a below-average rate of 0.4% in June.
Looking to core annual inflation though, that is seen at 2.5% in June and remains unchanged from May. That as services inflation continues to be more sticky, rising by 3.1% in June.
While the ECB can take some comfort in a lesser impact in terms of energy price developments, the coast isn’t quite clear yet. That especially with the latest developments this week showing how fragile the whole situation in the Middle East actually is.
This article was written by fl9bde53b91e184082bbe3aa3acaaf2cb0 at investinglive.com.